HSBC prepares counter-bid for Lehman Brothers

by Gill Montia

Story link: HSBC prepares counter-bid for Lehman Brothers

Yesterday’s news that the Korea Development Bank (KDB) had confirmed that it was bringing together a consortium to acquire a stake in Lehman Brothers, the troubled US investment bank, has been followed by reports that HSBC is preparing a counter bid.

South Korea’s Chosun Ilbo newspaper has reported that HSBC is developing its plans with an unnamed Chinese bank and other parties and according to The Times, the bank and its partners could be interested in taking more than the 25% that KDB plans to acquire.

KDB and Lehman brothers are apparently haggling over price, which it estimates at up to $5.3 billon for one-quarter of the business.

However, a bid from HSBC could prompt its activist shareholder, Knight Vinke, into renewed criticism of the bank’s board.

Last autumn the US hedge fund led a shareholder revolt over issues of corporate governance and HSBC’s strategy of acquiring minority stakes in businesses.